Congressman Donalds Introduces Bill to Permanently Establish US Strategic Bitcoin Reserve

US Representative Byron Donalds is set to introduce a bill in Congress that aims to codify President Donald Trump’s executive order establishing a US Strategic Bitcoin Reserve. This move is significant as it seeks to formalize the integration of Bitcoin into the nation’s financial strategy, ensuring that the reserve becomes a permanent fixture and cannot be dismantled by future administrations through executive action.

Trump signed the executive order on March 7, directing the use of Bitcoin seized in government criminal cases to establish a national reserve. The legislation introduced by Donalds is designed to prevent any future administration from eliminating the Strategic Bitcoin Reserve and the US Digital Asset Stockpile through executive actions.

Donalds, a Florida Republican, emphasized the importance of this legislation, stating that it is time for Congressional Republicans to end the war on crypto waged by Democrats for years. The bill requires at least 60 votes in the Senate and a House majority to pass. With Republicans holding a Senate majority and generally more crypto-friendly stance, the bill has a chance of passing.

The introduction of this bill marks a pivotal moment for the wider crypto industry. It aims to cement the reserve as a permanent fixture, shielding it from reversal by future administrations. This legislation signals the US government’s intent to integrate Bitcoin into its financial framework, potentially clarifying the government’s stance on digital assets and reducing uncertainty that has long plagued the crypto space.

However, identifying the right funding mechanisms and custody solutions for the Bitcoin reserve is a challenging step for governmental entities that may delay the fund’s creation. The bill may also provide more clarity on the government’s future Bitcoin acquisition strategies. Although the current plan does not involve government Bitcoin purchases, the order does not rule them out in the future. The order authorizes the US Treasury and Commerce secretaries to develop “budget-neutral strategies” to buy more Bitcoin for the reserve, provided there are no additional costs to taxpayers.